Budget 25/26
July 1 2025 - June 30 2026
Distribution account Total
Budget 25/26
Income
Burial Services & Fees 0.00
At-Need Burial Services & Fees 140,000.00
Pre-Need Burial Services & Fees 70,000.00
Total for Burial Services & Fees $210,000.00
Property Tax Apportionment 170,000.00
Refunds 0.00
SBC Interest Income 0.00
- -
Total for Income $380,000.00
Cost of Goods Sold 0.00
Gross Profit $380,000.00
Expenses
Advertising & Marketing 0.00
Bank Charges & Fees 0.00
Board Member Expenses 2,600.00
Equipment Expense 0.00
Grounds Equipment 1,500.00
Inventoriable Equipment 1,000.00
Maintance of Equipment 0.00
Back Flow Testing 265.00
Total for Maintance of Equipment $0.00
Non-Invetoriable Equipment 0.00
Supplies & Materials 3,000.00
Total for Non-Invetoriable Equipment $0.00
Repair & Maintance 1,000.00
Total for Equipment Expense $0.00
Equipment Rental 0.00
Grounds Equipment 500.00
Office Equipment 3,000.00
Total for Equipment Rental $0.00
General Maintance 0.00
Building Improvements 500.00
Grounds 0.00
Grounds Improvement 3,000.00
Landscaping 0.00
Hauling Expense 0.00
Total for Landscaping $0.00
Total for Grounds $0.00
Total for General Maintance $0.00
Grant Expense - Landscape Project 0.00
Insurance 0.00
Property & Liability Insurance 5,000.00
Vehicle Insurance 3,000.00
Total for Insurance $0.00
Interest Paid 0.00
Membership Dues & Subscriptions 5,000.00
Merchant Fees 2,000.00
AMEX 300.00
Total for Merchant Fees $0.00
Office Supplies 2,000.00
Postage 500.00
Total for Office Supplies $0.00
Payroll Expenses 0.00
CalPers 25,000.00
Employee Benefits 0.00
Health Insurance 25,000.00
Total for Employee Benefits $0.00
Payroll Tax Expenses 0.00
FICA - Medicare 2,200.00
FICA - OASDI 13,000.00
Total for Payroll Tax Expenses $0.00
Payroll Wage Expenses 0.00
Holiday Wages/Other Income 0.00
Overtime 0.00
Payroll Sick Leave/Other Earnings 0.00
Payroll Vacation 0.00
Regular Wages 0.00
Total for Payroll Wage Expenses $180,700.00
Workman's Comp. Insurance 30,000.00
Total for Payroll Expenses $0.00
Professional Services 0.00
Accounting & Bookkeeping Services 3,600.00
Clerical Services 25,000.00
Information Technology Services 0.00
Software 0.00
Total for Information Technology Services $0.00
Legal Services 5,000.00
Total for Professional Services $0.00
SBC Administrative Expenses 0.00
Payroll Processing Fees 3,500.00
Total for SBC Administrative Expenses $0.00
Uniform Expenses 1,500.00
Utilities 0.00
Electricity 5,000.00
Internet & Phone 5,000.00
Cell Phone 1,500.00
-
Total for Internet & Phone $0.00
Security 2,000.00
Trash & Sewer 2,000.00
Water 10,500.00
Total for Utilities $0.00
Vehicles 0.00
Fuel 2,500.00
Vehicle Repair & Maintance 5,000.00
-
Total for Vehicles $0.00
Total for Expenses $382,165.00
Net Operating Income $0.00
Other Income
Interest Earned 0.00
Total for Other Income $0.00
Other Expenses 0.00
Net Other Income $0.00
Net Income $2,165.00
Consolidated
Accounts Fy 2024/2025
Income
Billable Expense Income
Burial Services & Fees
At-Need Burial Services & Fees 140000
Endowment Care Collected 12000
Pre-Need Burial Services & Fees 40000
Vaults Sold
At-Need Vaults Sold 15000
Pre-Need Vaults Sold
Grant Income
Investment Income
Property Tax Apportionment 170000
Refunds 5000
Sales of Product Income
SBC Interest Income 6000
Unapplied Cash Payment Income
Total Income 388000
Cost of Goods Sold
Cost of Goods Sold
Total Cost of Goods Sold
Expense
Advertising & Marketing 500
Bank Charges & Fees
Board Member Expenses 3000
Conferences & Meetings
Conference Fees
Hotel/Travel/Food
Equipment Expense 0
Grounds Equipment 1500
Inventoriable Equipment 0
Maintance of Equipment
Annual Fire Extinguisher Inspection
Back Flow Testing
HVAC Bi-Annual Maintance
Non-Invetoriable Equipment
Supplies & Materials 5000
Office Equipment 1000
Repair & Maintance 0
Safety Equipment 1000
Hazmat 100
Equipment Rental 500
Grounds Equipment
2500
Office Equipment
General Maintance
Building Improvements 500
Building Maintance
Grounds
Grounds Improvement
Landscaping
Hauling Expense 11000
Grant Expense - Landscape Project
Grant Equipment & Repair Expense
Grant Professional Services
Insurance
Property & Liability Insurance 5000
Vehicle Insurance 3000
Interest Paid 0
Investment Management Fees
Meals & Entertainment
Membership Dues & Subscriptions 5000
Merchant Fees
All Paid 2000
AMEX 100
Office Supplies 500
Postage 200
Other Business Expenses 0
Payroll Expenses 0
CalPers 25000
Employee Benefits 0
Health Insurance 25000
Payroll Tax Expenses 0
CA - EDD 8400
CA - Social Security Annual Fee
FICA - Medicare 2200
FICA - OASDI 13000
Payroll Wage Expenses 180700
Holiday Wages/Other Income 0
Overtime 500
Payroll Sick Leave/Other Earnings 0
Payroll Vacation 0
Regular Wages 0
Workman's Comp. Insurance 30000
Professional Services
Accounting & Bookkeeping Services 3600
Auditing Services 11000
Clerical Services 15600
Information Technology Services 0
Software 12000
Legal Services 5000
Other Miscellaneous Service Cost
Purchases
Reimbursable Expenses 0
SBC Administrative Expenses
LAFCO 450
Payroll Processing Fees
Bi-Weekly Payroll 3000
EMACS - Payroll Systems & Printing 500
Unapplied Cash Bill Payment Expense
Uncategorized Expense
Uniform Expenses 1500
Utilities 0
Electricity 5000
Internet & Phone 5000
Cell Phone 1500
Pest Control Services 500
Trash & Sewer 2000
Roll-Off Dumpster Rental
Water 10500
Vehicles
Fuel 5000
Registration & Misc. Fees
Vehicle Repair & Maintance 2000
Total Expense 411350
Other Income
Interest Earned
0 0
Total Other Income
Other Expense
Reconciliation Discrepancies
Total Other Expense
• O
Total Net Income
County of San Bernardino
Cost Center: 7250005090, Barstow Cemetery District - General Fiscal Year: 2024
Commitment 2023 YTD 2024
Appropriation Commitment Item Name
Item Actuals Request
100 51001010 Regular Salary 210,730.32 225,000.00
100 51001015 Extra Help 0.00 0.00
100 51001035 Overtime 1,000.00
100 51001045 Termination Benefits
100 51001046 Retirement incent Pr 0.00
100 51001110 Members Retirement
100 51001120 Fica Oasdi-soc Sec T
100 51001200 Employee Grp Insuran
100 51001210 Unemployment Insuran
100 51001215 Dental Insurance
100 51001222 Short Term Disability
100 51001225 Fica Medicare Tax
100 51001230 State Disab Ins-empl 0.00
100 51001235 Workers Comp Insuran 38,000.00
100 51001236 Workers Comp-exp Mod 0.00 0.00
200 52002000 Op Expenses - Svcs & 10,000.00
200 52002025 Clothing & Personal 0.00 0.00
200 52002027 Staff Uniforms 2,000.00
200 52002031 Pr Sysm Emacs (Isf) 1,000.00
200 52002035 Phone Company Svcs ( 2,200.00
200 52002060 Purchase For Taxab R 15,000.00
200 52002070 Food 0.00
200 52002071 Food-other 0.00
200 52002075 Memberships 3,000.00
200 52002077 Certification/licens 0.00
200 52002080 Publications 0.00 0.00
200 52002085 Legal Notices 0.00
200 52002090 Miscellaneous Expens 0.00
200 52002115 Computer Software Ex 0.00 12,000.00
200 52002116 Computer Hardware Ex 3,600.00
200 52002120 Small Tools & Instru 0.00 5,000.00
200 52002130 Noninventoriable Equ 2,500.00
200 52002135 Special Dept Expense 0.00 0.00
200 52002150 Purchases For Resale 0.00
200 52002180 Utilities 12,000.00
200 52002182 Utilities-electricit 5,000.00
200 52002188 Utilities-refuse 3,500.00
200 52002190 0.00
200 52002220 Other General Liab ( 4,000.00
200 52002235 Vehicle Liability (i 1,800.00
200 52002304
200 52002305
200 52002322
200 52002330
200 52002400
200 52002405 2000
200 52002415
200 52002425
200 52002441 600.00
200 52002453 1,000.00
200 52002455 Consulting 150,000.00
200 52002670 Mileage/travel Damag 500.00
200 52002812 Household Expenses 2,600.00
200 52002815 Kitchen & Dining 0.00
200 52002825 Laundry & Dry Čleani 500.00
200 52002835 General Household Ex 0.00
200 52002855 General Maintenance-Equipm
200 52002860 Automotive Repair & M
200 52002870 0.00 000
200 52002885 0.00
200 52002890 0.00
200 52002895 Rents & Leases-equip
200 52002900 0.00 0.00
200 52002905 Rent&lease-struct, 0.00 0.00
200 52002953 Fuel
200 52006200 Equip Maint Svcs 0.00 0.00
241 52412410 Data Processing (isf 0.00 0.00
241 52412416 Cpu/Ent Printg (Isf) 0.00 0.00
294 52942941 Conf/trng/seminar Fe 0.00
294 52942942 Hotel - Non-taxable 0.00
294 52942943 Meals - Non-taxable 0.00 0.00
294 52942945 Air Travel 0.00 0.00
400 54004005 Land 0.00 0.00
410 54104010 Improvements To Land 0.00
430 54304030 Struct & Improv To S 0.00
440 54404040 Equipment 0.00
440 54404045 Heavy Equipment 0.00
450 54504050 Vehicles 0.00
000 40008015 Prop Tx Cur Sec 1% T
000 40008025
000 40008035
000 40008115
000 40008125
000 40008135
000 40008145
000 40008147 Do Not Use 0.00
000 40008166
000 40008172
000 40008176 COUNTY REPORT:
000 40008191 2.77
000 40008230
000 40008235
000 40008295 0.00
030 40308500 Interest
030 40309984
040 40408800
070 40709247
070 40709800
075 140759255 0.00 0.00
County of San Bernardino
Cost Center: 7250005090, Barstow Cemetery District - General Fiscal Year: 2022
Approp Commitment
riation Commitment Item Name 2022 Budget
Unit Item
100 51001010 Regular Salary $ 215,000.00
100 51001035 Overtime 1,500.00
100 51001110 Members Retirement (CaPERS) $ 50,000.00
100 51001200 Employee Grp Insuran (Health) $ 35,000.00
100 51001210 Unemployment Insuran $ 2,100.00
100 51001225 Fica Medicare Tax $ 14,100.00
100 51001235 Workers Comp Insuran $ 28,000.00
200 52002000 Op Expenses - Svcs (COGS & Tax) $ 35,000.00 200 52002027 $ 3,000.00
200 52002031 Pr Sysm Emacs (Isf) 1,000.00
200 52002035 Phone Company Svcs $ 1,850.00
200 52002075 Memberships $ 2,300.00
200 52002090 Miscellaneous Expens (Bank, Sales Tx Pd.) $ 250.00 200 52002115 Computer Software Ex $ 500.00
200 52002135 Special Dept Expense (Board Stip) $ 3,500.00 200 52002180 Utilities (water) $
200 52002182 Utilities-electricit $
200 52002188 Utilities-refuse
200 52002220 Other General Liab (Liaiblity Insurance) $ 200 52002235 Vehicle Liability (Vehicle Insurance) $
200 52002305 General Office Expen $
200 52002322 Enterprise Printing (ISF ONLY) $
200 52002330 Postage Reimbursable $
200 52002400 Prof Services (Financial + Legal) $
200 52002425 Credit Card Merchant $
200 52002441 Exterminator $
200 52002855 General Maintenance- $ 29,400.00
200 52002860 Automotive Repair & $
Rents & Leases-equip $ 1.50000
200 52002895
200 52002953 Fuel 2,500.00
294 52942941 Conf/trng/seminar Fe $ 10,000.00
294 52942942 Hotel - Non-taxable $ 10,000.00
440 54404040 Equipment $ 10,000.00
Expense Totals $ 606,400.00
000 40008015 Prop Tx Cur Sec 1% T $
000 40008025 Prop Tx Cur Unsec 1% $ 3,500.00
000 40008035 Prop Tx Cur Unitary $ 19,200.00
000 40008115 Prop Tx Pri Sec 1% G $
000 40008125 Prop Tx Pri Unsec 1% $
000 40008145 Int & Pen Delinquent $
000 40008166 Residual Balance $
000 40008172 Statutory Pass Thru
000 40008191
000 40008230 Sip Rot Esco Pro
000 40008235 1200.00
000 40008295 Sales And Use Taxes
030 40308500
040 40408800 Gen Tax Lvy Homeowne
County Revenue Totals 153,400.00
County Revenue Totals 153,400.00
Cemetery Revenue Totals 453,000.00
Total Revenue 606,400.00
Special Study of the
Barstow Cemetery District
LAFCO 3266
LAFCO
for San Bernardino County
Accepted and Filed January 17, 2024
January 2024
Barstow Cemetery District Special Study
TABLE OF CONTENTS
Executive Summary
Section 1: Purpose of Report
Section 2: What is a Public Cemetery District? 8
Section 3: Barstow Cemetery District History 11
Section 4: Previous LAFCO Reviews and Studies 12
Section 5: Continued Monitoring:
Review of Finances and Internal Controls thru June 2022 14 Section 6: Continued Monitoring:
July 2022 to December 2023 23
Section 7: Options 28
Attachments 31
Sources 31
2 January 2024
Barstow Cemetery District Special Study
EXECUTIVE SUMMARY
The Barstow Cemetery District (the "District") has historically experienced challenges with governance, management, and finances. The Local Agency Formation Commission's 2008 and 2020 service reviews related to the District identified structural deficiencies which have intensified since then. These structural deficiencies resulted in mounting challenges with staffing, operations, and general governmental functions. In June 2023, LAFCO staff received concerns from citizens regarding the District. Staff then attended the District's July 12 meeting and provided public comment on LAFCO's role over special districts. At the LAFCO July 2023 meeting the Executive Officer reported that staff attended a meeting of the Barstow Cemetery District to discuss their ongoing issues and public comment was provided regarding the challenges facing the District. Subsequently, the Commission directed its staff to conduct a service review or special study of the District.
In brief, a public cemetery district:
• Is a not well known but vital public service. They give communities the means to publicly finance cemetery operations, and to provide respectful and reasonably priced interment services, particularly in rural or semi-rural areas of the state. • Is a not a typical district. It is a trust to maintain the resting place of others in perpetuity as well as management of others' funds in trust. Hence a board of trustees instead of board of directors.
• Is unique in its governance and financial operations. At the outset, and in the case of a failing cemetery district or private cemetery, the county is the default cemetery jurisdiction, governing body, and fiscal authority.
Below are the objectives of this special study (in bold) with staff's summary:
1) Identify the strengths, weaknesses, opportunities, and threats of the Barstow Cemetery District its cemetery services.
This study identifies two root causes of the challenges facing the District - one internal and one external.
A. Challenges resulting from historical recruitment and retention of the board of trustees and general manager in this disadvantaged community. coupled with the lack of acumen and training of the general manager position.
This has led to a cycle of lack of understanding on how to govern and operate a government agency, lack of understanding of financial management, lack of accurate plot mapping records and data, and lack of 3 January 2024
Barstow Cemetery District Special Study
internal controls. What happens when organizations do not have internal controls? They expose themselves to theft, embezzlement, and liability. It is not to say that these things have happened, but bad actors can exploit these weaknesses. Further, without proper internal controls the independent auditor may not be able to properly identify the risks associated with the organization. Lastly, this study stresses that the board of trustees make policy and they direct the general manager to carryout the day-to-day operations. Similarly, the general manager is of one type of job classification and the field workers are of another job classification with specific liability coverage.
All the above has resulted in unnecessary risk and exposure as well as lack of accountability over much time.
B. Challenges in raising revenue due to statutory restrictions.
The State Health and Safety Codes prohibit public cemetery districts from performing activities in competition with private cemeteries. • Section 9060 currently prevents public cemetery districts from providing above-ground mausoleums. Allowing above-ground interments would provide a choice of the type of services desired, save expensive ground space, and increase cemetery revenues. • Section 9053 currently restricts public cemetery districts from selling monuments or markers. Allowing these sales would meet customer demand and create an additional source of revenue.
The District also needs to tell its own story. Cemetery districts are relatively unknown to the community. It is important for the District to tell its own story so its constituents and other elected officials can better understand how these important services are provided and governing bodies can make more informed decisions.
2) Review options available for sustainable service delivery.
The board has taken actions to chart a new path for the District. They have replaced the former general manager with a new general manager and a consultant. These new leadership staff members have hired new grounds crew, upgraded the financial accounting system, undertaken an accounting and digital mapping of the records and data, and are establishing internal controls via a policy and procedure manual.
' California Association of Public Cemeteries. "What You Should Know about Public Cemetery Districts".
Pamphlet, date unknown.
4 January 2024
Barstow Cemetery District Special Study
In essence, what is occurring is a reset - a generally new board, new general manager, new policy and procedure manual, new internal controls, culture, and standards. Now is the time to create and foster the culture and standards that will promote sustainability. Such actions that can be taken by the Commission and the County are to:
• Request the District board and general manager to attend LAFCO's Governance Training sessions that are typically held in Apple Valley. • Request the County Supervisorial Districts that overlay the District's boundary, as they are the appointers of the District's board of trustees, to ensure that District board members and general manager participate in training activities. It behooves the County to provide the District with the mechanisms to promote sustainability and adherence to the new standard due to the woven statutory measures that place the board of supervisors and county treasurer as the governing body and treasurer, respectively, of a public cemetery district should the county desire to do so.
The above actions would support sustainability and the hopeful result would be to recruit and retain competent board members, retain a competent general manager, recruit and retain competent grounds crew, obtain the correct equipment for the task, implementation of a policy and procedure manual with internal controls, as well as continual professional training in governance, finance, and cemetery operations.
3) Review options available should the District not be able to provide sustainable service delivery.
Section 7 of this study outlines the available options should the District not be able to provide sustainable service delivery. Of the options identified, LAFCO staff's position is that the only option that would succeed is for the Commission to make a formal request to the County Board of Supervisors to invoke the statutes to assume governance and financial responsibility of the District and its cemetery. This option does not have to be permanent; even if temporary, it would provide the opportunity to reset the board and staff positions and implement the necessary internal controls and support mechanisms. 5 January 2024
Barstow Cemetery District Special Study
SECTION 1: Purpose of Special Study
Why did the Commission Initiate a Special Study?
The District has historically experienced challenges with governance, management, and finances. The Commission's 2008 and 2020 service reviews identified structural deficiencies which have intensified since then. These structural deficiencies resulted in mounting challenges with staffing, operations, and general governmental functions.
In June 2023, LAFCO staff received concerns from citizens regarding the District. Staff then attended the District's July 12 meeting and provided public comment on LAFCO's role over special districts.
At the LAFCO July 2023 meeting during public comment, David Maya representing Friends of Barstow Cemetery Task Force, provided comments regarding the challenges facing the District. Additionally at the July meeting, the Executive Officer reported that staff attended a meeting of the Barstow Cemetery District to discuss their ongoing issues. The Commission directed its staff to conduct a service review or special study of the District.
In late July, the District board terminated its general manager and contracted with the general manager of the Twentynine Palms Cemetery District, Emily Helm, to be the Acting General Manager. The intent is for Ms. Helm to provide professional services until such time that the District is operating satisfactorily and can hire a full-time replacement. Both districts agreed to the dual role as it is a temporary measure. In October, the District hired a new general manager and office staff with Ms. Helm remaining as a part-time consultant.
Authority to Conduct a Special Study
LAFCO has a state-mandated role to review the ability of an agency to provide a service, if that service is efficient and effective, and if the agency is accountable for community service needs. Instead of conducting a service review, the Commission directed its staff to prepare a special study pursuant to Government Code Section 56378 of the District. This approach permits LAFCOs to study agencies and their maximum service area and service capacities.
Objective
The objective of this special study is to:
1) Identify the strengths, weaknesses, opportunities, and threats of the District and its cemetery services.
2) Review options available for sustainable service delivery. 6 January 2024
Barstow Cemetery District Special Study
3) Review options available should the District not be able to provide sustainable service delivery.
Agency Outreach
LAFCO staff conducted an extensive outreach effort with the District, including, but not limited to:
• In Person Interviews. LAFCO staff conducted a site visit and interviewed the general manager and two board members from the Barstow Cemetery District. • Staff presentation to District board of trustees. LAFCO staff presented the final draft of the special study to the District's board meeting on December 20, 2023. • Notice of the LAFCO hearing. LAFCO provided the required notice of the Commission hearing to all agencies, stakeholders, and interested parties, which is also noticed on the LAFCO website.
• Staff report with final draft. The staff report, outlining recommendations for Commission action, along with the final draft of the special study, was provided to all affected agencies, stakeholders, and interested parties, which is also available on the LAFCO website.
Report Order
This special study is organized in chronological order when possible. 7 January 2024
Barstow Cemetery District Special Study
SECTION 2: What is a Public Cemetery District?
The California State Legislature established the Public Cemetery District Law in 1909.
It authorized the creation of public cemetery districts to give communities the means to publicly finance cemetery operations, and to provide respectful and reasonably priced interment services, particularly in rural or semi-rural areas of the state.
Cemetery districts are authorized to provide standard cemetery functions, including land acquisition, cemetery maintenance, interment/disinterment services and grounds keeping. In private religious and fraternal cemeteries, the costs of these services are reflected entirely in the prices of grave spaces, burial fees, and charges against endowment funds. Public cemetery districts finance these services through property taxes and fees for services (i.e. the sale of burial plots, charges for openings, and setting of markers).
Public cemeteries are among the earliest and oldest public facilities in the state and were in existence prior to the enactment of the first public cemetery district law in 1909.
Public cemetery districts are organized and have powers pursuant to Division 8 of the California Health and Safety Code relating to cemeteries and specifically pursuant to the Public Cemetery District Law (Health and Safety Code §9000 et seq.). This law was revised in its entirety and re-codified effective January 1, 2004.
Public cemetery districts are special districts that are legally separate from any other unit of local government. A governing body composed of three or five members is solely responsible for all aspects of district operations. Trustees, who must be registered voters within the district, are appointed by county board of supervisors to fixed, four-year terms of office. Alternatively, a board of supervisors can appoint itself as the board of trustees. Today, there are 253 public cemetery districts in California, including four districts in San Bernardino County (two independent and two dependent).
Cemetery districts rank fourth in the total number of special districts in California, behind water districts, fire districts and community services districts.
Benefits to Residents Residing within a Public Cemetery District The key benefit for residents residing in a public cemetery district is access to reasonably priced burial and, if available, cremation services. The Health and Safety Code prescribes those who may be interred in district cemeteries. The deceased should have been a resident or taxpayer of the district, or former resident or taxpayer of the district who purchased lots prior to leaving the area or selling his/her land. Family members are eligible for interment but are limited to spouses, grandparents, children and siblings. The law mandates that cemetery districts have local policies and fees for non-residents.
8 January 2024
Barstow Cemetery District Special Study
Fiscal Challenges Facing Public Cemetery Districts
First, unlike most special districts, cemetery districts do not hold monopoly service authority. Private cemeteries, both religious and secular, can and do compete with public cemeteries particularly in more urbanized areas. Therefore, existing cemetery districts face market pressures usually not associated with the delivery of most other government services. Second, most public cemeteries are in rural or disadvantaged areas where private cemeteries cannot operate profitably. Third, public cemetery districts have inherited unendowed plots that must be cared for and acres of land with no way to charge for their maintenance. Fourth, since 1985, all public cemetery districts have been required to collect endowment contributions to fund long-term maintenance.
However, it is not known if only 40 years' worth of gains has been adequate to fund ongoing maintenance for interned plots that did not pay into the required endowment.
As a result, the formation of new public cemetery districts has been uncommon in California.
Relationship between Counties and Public Cemetery Districts Public Cemetery Districts are unique in their governance and financial operations. At the outset, and in the case of a failing district or enterprise, the county is the default cemetery jurisdiction, governing body, and fiscal authority. For example:
• Cemetery Jurisdiction
• If not owned by a city or fraternal or beneficial association or society, public cemeteries are under the jurisdiction and control of the board of supervisors of the county in which they are situated.
• Governing Body
Board trustees of cemetery districts are appointed by a county board of supervisors to fixed, four-year terms of office. Alternatively, a board of supervisors can appoint itself to be the board of trustees. • A board of supervisors, at the request of the district board of trustees, may increase or decrease the number of members of the board of trustees, to five or three, respectively.
• Fiscal Authority
• For those cemetery districts with annual revenues of $500,000 or less, the county treasurer serves as the district treasurer and receives no compensation for the receipt and disbursement of money of the district. (If a district has total annual revenues of $500,000 or greater, the district may 9 January 2024
Barstow Cemetery District Special Study
withdraw its funds from control of the county treasurer, appoint its own district treasurer, and manage its own funds.)
• A cemetery district may request the purchasing agent of the county to make purchases of materials, equipment, or supplies on its behalf or may request the purchasing agent of the county to contract with persons to provide authorized projects, services, and programs.
Existing law allows special districts to get cash advances from the county treasurer to pay authorized expenses. Government Code §53961 allows cemetery districts to have larger revolving funds with the county treasurer (up to 110 percent of one-twelfth of the district's adopted budget for that fiscal year) than most special districts.
10 January 2024
Barstow Cemetery District Special Study
SECTION 3: Barstow Cemetery District History
Mountain View Memorial Park started as a private cemetery in the 1930s. In 1947, the San Bernardino County Board of Supervisors and the electorate approved the formation of the Barstow Cemetery District, transitioning the cemetery from private to public.
The District's boundaries have not changed since its formation and comprise approximately 1,111 square miles. The District's service area includes the City of Barstow, area northwest and southeast from the City, and extends westerly to the Kern County line. The District's governing board consists of five trustees appointed at-large to four-year staggered terms.
The District owns three parcels (one is vacant) comprising 22 acres. Two parcels contain the memorial park on a total of 17 acres, and the vacant parcel comprises five acres. The memorial park, operating in the name of Mountain View Memorial Park, is approximately one mile outside the City of Barstow corporate limits but within its sphere of influence. According to the District, there are roughly 100 internments a year, with roughly 8,900 internments to date and 13 acres that are unmarked.
Barstow Cemetery District
Zero Sphere of Influence
Base
City of Barstow
40 Barstow
Sphere
Barstow Cemetery District I City of Barstow Sphere County Line City of Barstow Freeway
Raretow Comator
3.5 14 District (Zero Sphere) Cemetery
Disclaimer: The information shown is intended to be used for general display only and is not to be used as an official map. • Miles • Military Facilities
11 January 2024
Barstow Cemetery District Special Study
SECTION 4: Previous LAFCO Reviews and Studies
A. 2008 Service Review of the Barstow Community (LAFCO 3034) LAFCO conducted the first service review for the Barstow Cemetery District in 2008. At that time, LAFCO staff raised concerns regarding the District's fiscal health, lack of a master plan, and non-compliance with providing annual audits and budgets to the State Controller and County Auditor. Based on the determinations in the 2008 service review, LAFCO designated a zero sphere of influence for the District and stated its position that either the County of San Bernardino or the City of Barstow succeed to the cemetery's operations. The Commission also referred the matter to the County Auditor for further investigation of the District's financial matters with notification to the Grand Jury.? B. 2020 Service Review of Public Cemetery Districts (LAFCO 3245) The second service review to include the District was in 2020 for all public cemetery districts within the county.3 The service review included the following conclusions, recommendation for the District, and determinations made by the Commission for the District:
Conclusions
a. From an organizational perspective, has historically lacked the proper foundations on governance, and the financial resources to adequately fund bookkeeping and the overall operations of a special district. In response to the First Draft, the District identifies that it is currently searching for a financial advisor.
b. Experienced frequent changes in personnel, as well as limited financial resources, perpetuating the District's ongoing operational issues. c. Operated without legal counsel until October 2020, exposing the District to unnecessary risk. In response to the First Draft, the District identifies that it has retained legal counsel.
d. Is making strides to organize the office records, and there is movement towards digitization of the plot mapping information.
e. Infrastructure is adequate, in light of revenue and operating contraints, and irrespective of the water and well issues. As for the water well issues, in response to the First Draft, the District states that Mojave Water Agency 2 http://www.sbcounty.gov/uploads/lafco/proposals/servicereviews/barstow/Reso_3039_LAFCO_3034.pdf 3 https://www.sbcounty.gov/uploads/LAFCO/Downloads/Service_Review_PCD/Cemetery_SR_Final.pdf 12 January 2024
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has offered their experience and professional resources to implement a plan for significant water reduction along with grounds beautification. f. As of October 1, 2020, the most recent available audit for the District is for FY 2016/17. Therefore, this service review does not include a complete and accurate financial analysis for the District.
g. General Fund is operating on a running deficit.
h. The circumstances identified by the 2013/14 Grand Jury have returned. i. Current auditor has made so many ledger and journal entries that it can no longer conduct an independent audit, as its role shifted from independent auditor to bookkeeper.
Endowment Fund appears to be healthy, with annual increases in the fund balance and relatively minor transfers out.
Recommendation
LAFCO recommends that the Barstow Cemetery District should focus on the implementation of governance and financial policies and practices.
Determination
LAFCO determines that continued monitoring take place for the Barstow Cemetery District.
Continued Monitoring
Staff provided three updates to the Commission, May 2021, July 2021, and November 2021. The updates outlined the ongoing challenges and notified the Commission that audits were completed for FY 2017/18 and FY 2018/19, and that no significant positive improvements were identified in the financial statements.
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SECTION 5: Continued Monitoring:
Review of Finances and Internal Controls through June 2022 The sole source used for this analysis is the District's own financial statements prepared by an independent auditor. As of the 2020 Service Review, the most recent available audit for the District was for FY 2016/17. Since then, the District has completed its backlog of past-due audits, and LAFCO staff can now prepare a comprehensive review up to June 30, 2022. The table below shows the audit completion dates:
Audit Year 2018 2019 2020 2021 2022
Completion | Oct 2021 | Nov 2021 | June 2022 | Aug 2022 | March 2023 Revenues are comprised of service fees, the District's share of the general property tax levy, and interest. Most of the revenues are derived from service fees. The District continues to utilize the County for payroll. During this period, the District had an external bank account for deposits and paying invoices.
The District maintains three funds for its operations:
1. The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
2. The Endowment Fund accounts for the portion of the monies paid for every interned person to be held as a perpetual endowment. Pursuant to State law, the board of trustees may not spend the principal of the Endowment Fund. However, the principal can be invested in securities and obligations, and the interest and gains may be spent from the investments (§9065(e)).
3. The Pre-Need Burial Fund is a private-purpose trust fund that transfers funds from its earnings to the General Fund to finance burial expenditures. Such fiduciary funds are used to account for assets held by the District as an agent or trustee for those to be interned later.
A. Summary
The root cause of the District's challenges is robust turnover and lack of government acumen of the board of trustees and general manager - not of any one person in particular but as a whole over time. This statement is supported by the determinations from the previous service reviews (LAFCO 3034 and 3245) and this special study (LAFCO 3266).
One result has been a lack of internal controls.
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B. Internal Controls
Internal controls are mechanisms, rules, and procedures implemented by a company or agency to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. At the outset, internal controls establish the processes and outline employee protocol and procedures so employees are not left guessing how to perform their job duties or which procedure to follow.
Unfortunately, this has been the case at the District. Additional reasons for adopting internal controls are that they:
• Improve process performance.
• Improve operational efficiency.
• Keep duties separated.
• Mitigate business risk.
• Organize information.
• Produce timely financial statements.
• Reduce errors.
The District's independent auditor issued findings and recommendations for each audit identifying the significant deficiencies, material weaknesses, and instances of noncompliance related to the financial statements that are required to be reported in accordance with Government Auditing Standards. Items 1 and 2 below are identified in all five audit years, and items 3, 4, and 5 were not identified for 2021/22.
Finding 2022-001: Fiscal Instability
Findings: At June 30, 2022, the District's General Fund owed $83, 116 to the Endowment Fund and $321,039 to the Pre-Need Fund. The District's General Fund has $174,800 in assets, while liabilities total $417,870 at June 30, 2022. Continued cash borrowing threatens the District's financial stability.
Recommendation: We recommend the District create a plan that enables the General Fund to achieve and maintain a positive ending fund balance. Those actions will likely include a combination of reductions in expenditures/deficits and increases in revenues/surpluses. Additionally, the District should seek opinions from the County and its attorney whether it is allowable to close the District's Pre-Need Fund and account for all non- Endowment related activities within its General Fund. This would result the elimination of the interfund payable between the Pre-Need Fund and General Fund of $321,039. 15 January 2024
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Finding 2022-002: Policies and Procedures
Findings: Our audit procedures involve obtaining and evaluating various policies and procedures which comprises the District's internal controls. During our audit, we noted the District needs to establish formal manual, approved by the governing board. They would provide detailed guidance to employees, especially given the small size of the District. This will help to ensure consistency in these areas if there is staff turnover and provide for equal application.
Communication is an essential component of a comprehensive framework of internal controls. One method of documentation of policies and pry effectes. A wel-des ove and propiegy md intained system of is tumering documentation of policies and procedures.
policies and procedures enhances both accountability and consistency.
The auditor's findings specifically identify the following areas (summarized by LAFCO staff):
A. Accounting Policies and Procedures - the District lacks these policies and procedures B. Capital Assets - there is no policy regarding inventory of assets and capitalization C. Accounts Payable/Purchasing - the District does not require a vendor to provide a 1099 prior to issuing payment and lacks a policy regarding credit card purchases D. Endowment/Pre-Need Sales - The District did not perform monthly reconciliations of its sales nor did the District make its deposits and transfer required amounts to the appropriate funds for endowment or pre-need.
E. Month-End/Fiscal Year Closing - At the conclusion of each month the district should have set procedures that close out the financial entries for the month, including recognizing the activity that occurred within its funds held within the county treasury.
At the conclusion of the fiscal year, the district must update its fund financial accounting records on a modified accrual basis and it's government-wide financial accounting records on a full-accrual basis.
Recommendation: We recommend the District develop and establish formal policies and procedures as discussed above. The policies and procedures should be developed by appropriate personnel and approved by the governing board. The District should consider GOA's recommended practices and other resources during the process.
The District should develop formal accounting policies, procedures manuals and prepare a schedule of routine accounting tasks that need to be performed each month, quarter and at the close of the fiscal and calendar years, as applicable.
The schedule should include a detailed description of the required analysis and adjustments, along with due dates for the various procedures.
• Schedule should include provisions for signoffs, indicating when the applicable procedures were performed and reviewed as necessary.
• Prioritize making the required transfers to the Endowment and Pre-Need funds on a monthly basis. 16 January 2024
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Finding 2021-003: Cash Disbursements
Findings: During our review of cash disbursements, our sample of 35 disbursements identified 3 that were missing supporting documentation such as a receipt or invoice. the accounting records are complete are paramount to good internal controls.
Finding 2021-004: CaPERS Reporting
Finding: During our inquiries of the pension reporting process, it was discovered that the District does not have a procedure to monitor when part-time or seasonal employees qualify for membership. Additionally, during our review of the CaPERS submission reports it was noted that, while the correct pay rate was reported, the reported earnings for both employees tested were not accurately reported to CaPERS. In both cases employees reported earnings were not consistent with Underreporting compensation to Cal per can have signin matter perio coral one in significant penalties for the District.
Recommendation: We recommend that the District work with CaPERS to proactively report the correc information and retroactively report any payroll information that was incorrectly submitted to CaPERS.
Finding 2021-005: Cash Receipting Procedures
Finding: During our review of the cash receipting process, we noted 4 instances, in our sample of 112 receipts, where the receipt noting the services to be rendered used with the districts adopted pricing sheet, incorrectly calculated the total due or was a partial payment collected for pre-need services with no documentation of the future amounts due or the services to be rendered
Recommendation: We recommend that the District identify a process which automates and standardizes the invoicing process for services, including pre-need contracts through QuickBooks. All sales should be C. Cash & Investments and Fund Balances
The first table below identifies the cash and investments. Even though funds have shifted between accounts, with new accounts established, the total cash and investments have increased during this period.
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2018 2019 2020 2021 2022
Cash in SB County Treasury 165,955 167,297 130,001 141,883 144,174 Deposits - Bank of America 21,798 30,828
Cash - Wells Fargo Advisors 17,440 27,498
Deposits - Local Banks 37,424 40,299 156,471
Cash on hand 17,733 254
Investments 645,322 672,462 742,269 894,584 764,491
TOTAL 868,248 898,339 909,694 1,076,766 1,065,136
However, an agency may appear to be cash solvent, budget solvent, and long-run olvent, yet it may not be service-level solvent. Service level solvency is the abili f an agency to fund the services at levels that its citizens desire. An agency ma appear to be financially solvent, but it may not be able to support general activities at an adequate level. An increase in service level or large expense would affect cash, budget, or long-run solvency.
The table below shows the fund balances of each fund: General, Endowment, and Pre-Need. As with cash and investments, total fund balance has increased during this period. From 2018 to 2022, the Endowment Fund and Pre-Need Fund have increased considerably while the General Fund had a running deficit, decreasing in balance each year until 2022.
T
2018 2019 2020 2021 2022
General Fund (32,005) (139,434) (324,213) (320,338) (243,070) Endowment fund 786,119 842,663 909,056 1,080,563 973,431 Pre-Need fund 168,978 257,918 298,030 409,109 462,251
TOTAL 923,092 961,147 882,873 1,169,334 1,192,612
The us to here Need Generald Ends men fund The fiancal sat moreasing include its Management Discussion and Analysis, do not provide a reason for the amounts owed. The table below shows the amounts owed by the General Fund to the Endowment Fund and Pre-Need Fund, as well as outstanding water bills.
General Fund Owes 2018 2019 2020 2021 2022
Pre-Need Fund 163,003 243,569 281,700 321,039
Endowment Fund 22,255 40,963 60,155 83,116
Golden State Water Company 73,022 34,820
Fund Balance, General Fund (32,005) (139,434) (324,213) (320,338) (243,070) 18 January 2024
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D. General Fund
At this time, any unexpected expenses could further challenge the General Fund, prompt service reduction, fee increases, or cause the General Fund to enter negative territory and result in a running deficit. In short, the District lacks the availability of reasonable emergency reserves.
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
REVENUES
Charges for services 158,267 161,649 182,558 205,383 309,480 263,255 Property taxes 143,541 156,074 146,662 147,284 152,178 157,573 Other 5,852 7,481 833 3,434 11,268 572,031
Total Revenue $ 307,660 | $ 325,204 | $ 330,053 $ 356,101 | $ 472,926 $ 992,859
EXPENDITURES
Salaries & Benefits 232,590 215,324 261,409 233,173 305,634 304,357 Services & Supplies 199,426 116,719 171,873 222,851 163,417 180,487 Capital Outlay 12,424 4,200 84,856 - 430,747
Total Expenditures $ 432,016| $ 344,467 $ 437,482 $ 540,880 $ 469,051 $ 915,591 Revenues less Expend (124,356) (19,263) (107,429) (184,779) 3,875 77,268
OTHER FINANCING
Transfers In/Adjustments 11,443 28,829
Fund Balance End (41,571) (32,005) (139,434) (324,213) (320,338) (243,070) Current District management states that the District did not transfer funds from its Pre-Need and Endowment accounts to the General Fund when paying for expenditures related to such activities. Whereas it is correct to pay for these activities from the General Fund, the funds to pay for these activities would come from the Pre-Need or Endowment Funds. Lack of internal controls and a functioning policy and procedure manual led to this circumstance.
E. Endowment Fund
Since 1985, all public cemetery districts have been required to collect endowment contributions to fund long-term maintenance.
The figure below shows the fund balance of the Endowment Care fund for the past five years. The Endowment Funds appears to be healthy, with annual increases in the fund balance and relatively minor transfers out. Of concern is the lack of 19 January 2024
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transfers out to the General Fund. The law allows for investment gains to be used for maintenance and capital improvements.
Of note, the fund experienced a sharp gain of roughly $172,000 in 2020/21 with a corresponding sharp loss of roughly $107,000 in 2021/22 - not in line with previous years. The audit does not provide an explanation for the consecutive investment gains and losses.
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
REVENUES
Charges for services 27,016 17,418 17,654 18,708 28,204 22,961 Interest & investment 1,506 4,848 38,890 47,685 143,303 (130,093) Total Revenue $ 28,522 $ 22,266 $ 56,544 $ 66,393 $ 171,507 $ (107,132)
EXPENDITURES
Total Expenditures $ - s - $ - 5 - $ - $ -
Revenues less Expend. 28,522 22,266 56,544 66,393 171,507 (107,132)
OTHER FINANCING
Other
Transfers In (Out) (11,443) (28,829)
Fund Balance End $ 792,681 $ 786,119 $ 842,663 $ 909,056 $ 1,080,563 $ 973,431 sources: Statement of Revenues, Expenditures, and Fund Balances and Balance Sheets F. Pre-Need Fund
As shown in the table below, the Pre-Need Fund has experienced healthy annual gains since 2017/18.
2017/18 2018/19 2019/20 2020/21 2021/22
Fund Balance 163,354 257,918 298,030 409,109 462,251
Cash & Equivalents 5,213 32,107 3,900 21 21
Due from other Funds 103,606 163,003 243,569 281,700 321,039 Accounts Receivable 54,535 62,808 50,561 127,388 141,191 On July 27, 2022, the District's governing board approved a resolution to close the District's Pre-Need fund on deposit at the County Treasury and transfer those funds and activity to the General Fund. As identified in the 2021/22 audit and in Item B- internal Controls (Item 1), above:
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"Additionally, the District should seek opinions from the County and its attorney whether it is allowable to close the District's Pre-Need Fund and account for all non-Endowment related activities within its General Fund. This would result the elimination of the interfund payable between the Pre-Need Fund and General Fund of $321,039."
However, LAFCO staff points out Pre-Need funds are those of future internees and held in trust by the District. In other words, these funds are not the District's and should remain isolated and fully accounted. Failure to do so would be failure of their duty as fiduciaries.
G. Pension Liability and Contributions
CalPERS administers the District's retirement plan. The District's most recent audit, for FY 2021/22, identifies that its share of the net pension liability has decreased significantly from a high of $216,844 in 2018 to a low of $77,845 in 2022. Similarly, the funding of the plan (assets over liabilities) rose to a high of 90.91% from 69.85% during this same time. This snapshot shows that the District's portion of the CaPERS plan is healthy. However, this could change just as easy given the market conditions. 21 January 2024
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SECTION 6: Continued Monitoring:
March 2022 to December 2023
Additional Update to the Commission
At the March 2022 meeting during public comment, Dr. Denise Meek representing Save the Barstow Cemetery provided comments regarding the Barstow Cemetery Landscape Conversion project. In response, the Commission requested staff to review and provide an update on the landscape project.
On May 3, 2022, staff conducted a site visit to the cemetery. The District General Manager provided staff a tour of the grounds and identified the progress to date as well as next steps. At the May 2022 LAFCO meeting, LAFCO staff encouraged the District to increase communication with the community on the benefits of the project as well as better signage that clearly acknowledges the inconvenience that the project has created due to all the construction activity.
June and July 2023
In June 2023, LAFCO staff received concerns from citizens regarding the District.
Staff then attended the District's July 12 meeting and provided public comment on LAFCO's role over special districts.
At the LAFCO July 2023 meeting during public comment, David Maya representing Friends of Barstow Cemetery Task Force provided comments regarding the challenges facing the District to include its governance, management, and finances.
Additionally at the July meeting, the Executive Officer reported that staff attended a meeting of the Barstow Cemetery District to discuss their ongoing issues. The Commission expressed its sentiment for staff to conduct a service review or special study of the District.
In late July, the District board terminated its general manager and contracted with the general manager of the Twentynine Palms Cemetery District, Emily Helm, to be the Acting General Manager. The intent is for Ms. Helm to provide professional services until such time that the District is operating satisfactorily and can hire a full-time replacement. Both districts have agreed to the dual role as it is a temporary measure. In October, the District hired a new general manager and office staff with Ms. Helm remaining as a part-time consultant.
September to December 2023
During this period, the special study is being undertaken and is tentatively scheduled for Commission review and consideration at its January 2024 meeting. 22 January 2024
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In sum, the historical level of service considering revenue and operating constraints is not adequate. Strides have been made to organize the office records, and there have been efforts to digitize plot mapping information. The availability of resources (fiscal, adopted service or work plans) are not present to provide adequate service. • Record Keeping
The interim general manager inherited an organization that lacked the proper foundations on governance, and the financial resources to adequately fund bookkeeping and the overall operations of a special district.
Frequent changes in personnel, as well as limited financial resources, have perpetuated the District's ongoing operational issues.
• Financial Records and Bookkeeping
• 2020
A DOS-based software program was used for financial bookkeeping. • Update
During LAFCO's site visit, the interim general manager explained and showed the disparate record keeping methods of previous administrations.
Further, the advancement from DOS bookkeeping to QuickBooks is a marked improvement.
• Internment Records
• 2020
The available technology was not sufficient to conduct an efficient business. Hand-written plot maps remain in vellum/Mylar paper form at the District office with additional plot information housed in a DOS-based computer program. The District attempted to move towards a more comprehensive digital solution by contracting with a firm from Ohio to upgrade the District's existing BSM (Burial Space Manager) system into a modern product that incorporates plot information with plot mapping.
LAFCO staff understands that this project has never been completed and it is unclear to District staff why the contractor has not delivered the program. Nonetheless, some type of conversion to a more user-friendly system would move toward an improvement in public service. 23 January 2024
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Update
The interim general manager further explained and showed how she has reorganized the on-site internment records into a comprehensive methodology. In addition, the District has extracted the information from the old system and saved it into a common industry cemetery mapping solution, CemSites. When complete, the program will be on the District's homepage and interactive by map and name.
Policies
2020
The District could not identify if certain policies have been adopted. The historical record of the District is inadequate.
• Update
The District is adopting policies with the assistance of California Special Districts Association and using the policies of the Twentynine Palms Public Cemetery District as a guide.
• Audits
• 2020
The 2009/10 Grand Jury recommended that the District hire a bookkeeper, keep monthly financial statements and prepare an annual budget. Whereas the 2013/14 Grand Jury stated that this recommendation was accomplished, the circumstances returned. During LAFCO's site visit on September 25, 2020, District staff stated that its current auditor had made so many ledger and journal entries that it could no longer conduct an independent audit, as its role shifted from independent auditor to bookkeeper. Therefore, the District should focus on the implementation of appropriate financial practices. In response to the First Draft, the District identifies that it is currently searching for a financial advisor.
• Update
The district is current on completion of its audits. However, due to the lack of controls, the auditor decided not to engage in further audits for the District. Fortunately, the interim general manager convinced the independent auditor to not only conduct another audit engagement, for FY 2022/23, but to stay on for a few more years. As of this writing, the 2022/23 draft audit is anticipated by January or February 2024. 24 January 2024
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• Legal Counsel
" 2020
The District did not consult with legal counsel for its operations. However, for litigation matters, the District either hires legal counsel or has been covered by its insurance company. LAFCO's position is that operating without legal counsel exposes the District to unnecessary risk, which could lead to the need to have legal counsel for representation. Since the August 2016 hiring of the current general manager, she estimates that there have been at least six litigation matters regarding prior employee errors regarding plots. In response to the First Draft, the District identifies that it has retained legal counsel beginning October 2020.
Update
When interviewed by LAFCO staff in September, the interim general manager stated that the District did not have a general legal counsel. She further stated that the District was scheduled to approve a contract with Best, Best, Krieger for general counsel and litigation services. • Endowment Care Fund
2020
The Endowment Funds appears to be healthy, with annual increases in the fund balance and relatively minor transfers out. However, it appears that the gains from interest are low for an endowment nearing $800,000.
Recognizing the low returns, the District transferred a significant portion of its Endowment Funds from Wells Fargo to the Cooperative Funeral Fund.
Update
The District has closed out all accounts at private banks and deposited all funds at the County Treasury. Due to improper accounting, the District has generally not utilized the gains from its investments, as permitted by law. The District is undertaking a records evaluation to determine how much of the fund is principal and how much is gains. With that determination, the District would be able to use the gains for capital improvements and equipment.
LAFCO staff is assisting the District with this determination by working with the County Auditor to obtain historic financial records of the fund. 25 January 2024
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Equipment
2020
The machines and tools to dig graves were either out-of-order or were not acquired. The general manager engaged in activities outside of the position's classification with inadequate equipment.
Update
The general manager and board have hired staff dedicated to physical labor and are purchasing the correct equipment.
• Xeriscape and Upgrade Projects
The District is in the process, with the assistance of the Mojave Water Agency, to transition its landscape from grass to drought tolerant plants. The demonstration section is now complete, and removal of non-native trees continues. The next phase is to delineate the sections with new curbing followed by irrigation.
In addition to the xeriscape project, the following upgrades have recently occurred:
• New ADA compliant restroom is being constructed with a joint grant from the City of Barstow and the County.
• Office building upgrade to replace the roof and swamp coolers. • Purchase of a backhoe from grant funds from BNSF.
• Donation of $5,000 from Barstow Hospital for equipment. 26 January 2024
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SECTION 7: Options
It is well documented that the existing cemetery district, despite good intentions, has struggled for many years to provide adequate services and has fallen short due to staffing, financial and other issues. Considering the income levels of existing households and the need for the public cemetery, efforts should focus on governance and training to build a proper foundation for future success.
While the discussion of some government structure options may be theoretical, a special study should address possible options. Such options should consider:
• Improving public participation, local accountability, and governance; • Producing economies of scale and improving buying power in order to reduce service costs;
• Enhancing capital improvement plans;
• Improving the ability to provide and explain budget and financial data; and • Improving the quality and/or levels of service.
Evaluation of these options should weigh:
• Long-term savings of the change versus related transition costs; • Cost-benefit of restructuring the current governing body and/or administration to any proposed alternative;
• Impact on operating cost (short and long-term) due to government structure changes; and
• Impact of government structure options on an agency's financial stability.
1. Options available for sustainable service delivery.
A. System measures
This study demonstrates that the district has historically lacked proper controls, policies, and general good governance. Further, those charged with governance of the district, the board of trustees and the general manager, are generally new to the district. The following are the actions that need to occur for the district to be sustainable and provide efficient and effective service. 1) Hire and retain a competent general manager. The District hired a general manager in October 2023.
2) Proper training for the board of trustees and general manager that is continual. The City and County could support the continual training of the district board of trustees and general manager. This can be either from discretionary funds or inclusion their own training endeavors. 3) Adopt and implement proper controls.
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B. Overlaying agencies can lend support, what is allowed under law, the system measures identified above. The County Board of Supervisors has ultimate jurisdiction over public cemeteries and public cemetery districts. It behooves the board of supervisors to support good governance efforts of public cemetery districts. Such measures can include, but not be limited to, grant writing, training, one-time capital improvements, etc... LAFCO is not recommending that the county do the work; rather, to support implementing the mechanisms for continual good governance as well as one-time capital improvements.
C. An opportunity may exist for the District to lease its non-dedicated land to other public agencies. Section 9054 permits a district to use or lease land acquired for future cemetery use to a public agency for recreational use. The District identifies that there are unused areas at this time.
D. Utilize the gains from the endowment care fund to fund capital improvements.
2. Options available should the District not be able to provide sustainable service delivery.
Structure Options that include LAFCO
A. Consolidate the two independent cemetery districts (Barstow and Twentynine Palms). This option would consolidate the two independent districts under one governing body. Administratively, there could be economies of scale - fewer administrative staff. Operationally, there would not be economies of scale due to the need to house heavy equipment at each location since the distance between cemeteries is roughly 100 miles. For the governing body, an independent district with two zones roughly 100 miles apart does not lend to local governance.
Therefore, this option is not feasible.
B. Combine all public cemeteries (Barstow, Twentynine Palms, Lucerne Valley, and Searles Valley) by forming a County Service Area, governed by the County Board of Supervisors, to function as a single-purpose agency for all public cemeteries. Administratively and operationally, there would be economies of scale, as a single entity would conduct administration and operations. For the governing body, there would be a single body to govern all public cemeteries in the county. However, the two dependent districts (Lucerne Valley and Searles Valley) provide more than one function and separating these functions would reduce the community nature of the current form of governance in these communities. Further, this option would require an election. Therefore, this option is not feasible.
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Structure Options that do not include LAFCO
C. The County Board of Supervisors may appoint itself to be the board of trustees (§9026). Such an action would not require LAFCO approval as it would not be a change of organization; rather, the District remains but the governing body would be different. This would provide the District with resources that it currently lacks.
D. Cemetery service to be provided by the City of Barstow. Current law (Health and Safety Code §8125) authorizes cities to survey, lay out, and dedicate for burial purposes no more than five acres of public lands. The District operates more than five acres. If the City were to succeed to the District's cemetery services, special legislation would need to occur and there is statutory precedent for such authorization. In 2008, AB 1932 (Smyth) authorized the City of Simi Valley to operate a cemetery on public lands containing five acres or more. Should the City desire to succeed to the District's services and facilities, special legislation would be required.
E. Outsourcing financial and/or administrative duties. The board of trustees would have to weigh the cost-benefits of outsourcing versus in-house management.
F. The law allows a public cemetery district to convey a cemetery owned by the district to any cemetery authority.
G. Records show that community interest in board membership historically has been low. An option afforded in Public Cemetery District law is for the board to request through resolution that the County Board of Supervisors reduce board membership from five members to three members (§9020, §9025). In the LAFCO staff's view, limiting membership to three members for such a large geographical area would not promote any oversight efficiencies; a full membership of five members should be sought by the District and the County Board of Supervisors to promote adequate oversight of District affairs and community participation for an important service.
Alternatively, the County Board of Supervisors may appoint itself to be the board of trustees (§9026). Such an action would not require LAFCO approval as it would not be a change of organization, rather the District remains, but the governing body would be different.
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Attachments:
Barstow Cemetery District's portion of LAFCO's 2020 Countywide Service Review for Public Cemetery Districts
2021/22 Financial Statements, Findings
Sources:
Barstow Cemetery District
Financial Statements, FYs 2017-18 through 2021-22
Interview, 5 September 2023
CaPERS
Actuarial Reports
LAFCO
Fiscal Indicators Program
LAFCO 3034 - Service Review and Sphere of Influence Update for Barstow Cemetery District (2008)
LAFCO 3245 - Countywide Service Review for Public Cemetery Districts (2020) San Bernardino County
Interview, First Supervisorial District, 7 September 2023 Interview, Third Supervisorial District, 7 September 2023 30